Background of Martha Stewart Living Omnimedia Inc's new CEO fuel speculation of sale

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The dealmaking background of the new Chief Executive Officer of Martha Stewart Living Omnimedia Inc fueled speculations he would take the same path with the company founded by Martha Stewart. Daniel Dienst was appointed by Martha Stewart Living Omnimedia Inc last week to head the magazines and home décor firm. Dienst now holds the task of turning the USD 157 million company which had posted losses in the past five years.

A Bloomberg report said Dienst had headed companies which were later acquired by private equity companies.

Eidelman Virant President and Founder David Eidelman said a similar strategy could be taken by Martha Stewart Living Omnimedia. He told Bloomberg in a phone interview, "I don't think there's really any other way to maximize shareholder value other than to sell the company." Eidelman Virant holds shares in Martha Stewart Living which had lost USD 1.7 billion in market value. Its stock traded at less than USD 3 per share for most of 2013.

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